COMMENTARY

Peter Burgess

NAME: John D Rockefeller
OCCUPATION: Entrepreneur
BIRTH DATE: July 08, 1839
DEATH DATE: May 23, 1937
PLACE OF BIRTH: New York, New York
BEST KNOWN FOR: John D. Rockefeller was head of the Standard Oil Company and one of the world's richest men. He used his fortune to fund ongoing philanthropic causes.

Synopsis

John D. Rockefeller was born on July 8, 1839, in Richford, New York. He built his first oil refinery, near Cleveland and in 1870 he incorporated the Standard Oil Company. By 1882 it had a near monopoly of the oil business in the US, but aggressive competitive practices of the company led to the passing of antimonopoly laws. Late in life Rockefeller devoted himself to philanthropy. He died in 1937.

Profile
Born July 8, 1839, Richford, New York, U.S.—died May 23, 1937, Ormond Beach, Florida

American industrialist and philanthropist, founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust.

Rockefeller moved with his family to Cleveland, Ohio, in 1853, and six years later he established his first enterprise—a commission business dealing in hay, grain, meats, and other goods. Sensing the commercial potential of the expanding oil production in western Pennsylvania in the early 1860s, he built his first oil refinery, near Cleveland, in 1863. Within two years it was the largest refinery in the area, and thereafter Rockefeller devoted himself exclusively to the oil business.

In 1870 Rockefeller and a few associates incorporated the Standard Oil Company (Ohio). Because of Rockefeller's emphasis on economical operations, Standard prospered and began to buy out its competitors until, by 1872, it controlled nearly all the refineries in Cleveland. That fact enabled the company to negotiate with railroads for favoured rates on its shipments of oil. It acquired pipelines and terminal facilities, purchased competing refineries in other cities, and vigorously sought to expand its markets in the United States and abroad. By 1882 it had a near monopoly of the oil business in the United States. In 1881 Rockefeller and his associates placed the stock of Standard of Ohio and its affiliates in other states under the control of a board of nine trustees, with Rockefeller at the head. They thus established the first major U.S. “trust” and set a pattern of organization for other monopolies.

The aggressive competitive practices of Standard Oil, which many regarded as ruthless, and the growing public hostility toward monopolies, of which Standard was the best-known, caused some industrialized states to enact antimonopoly laws and led to the passage by the U.S. Congress of the Sherman Antitrust Act (1890). In 1892 the Ohio Supreme Court held that the Standard Oil Trust was a monopoly in violation of an Ohio law prohibiting monopolies. Rockefeller evaded the decision by dissolving the trust and transferring its properties to companies in other states, with interlocking directorates so that the same nine men controlled the operations of the affiliated companies. In 1899 these companies were brought back together in a holding company, Standard Oil Company (New Jersey), which existed until 1911, when the U.S. Supreme Court declared it in violation of the Sherman Antitrust Act and therefore illegal.

A devout Baptist, Rockefeller turned his attention increasingly during the 1890s to charities and benevolence; after 1897 he devoted himself completely to philanthropy. He made possible the founding of the University of Chicago in 1892, and by the time of his death he had given it more than $80 million. In association with his son, John D. Rockefeller, Jr., he created major philanthropic institutions, including the Rockefeller Institute for Medical Research (renamed Rockefeller University) in New York City (1901); the General Education Board (1902); and the Rockefeller Foundation (1913). Rockefeller's benefactions during his lifetime totaled more than $500 million.

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